Mitsui Chemicals To Develop Benzene Catalyst In Singapore

Singapore - Japan's Mitsui Chemicals Inc. said it will open a research and development center on Singapore's Jurong Island Oct. 1 to develop a catalyst to produce benzene from natural gas, in a bid to reduce its raw material costs in the long term.

The company hopes to end its reliance on costly naphtha-based benzene, which it currently buys on the international market from companies including Exxon Mobil Corp. (XOM).

Terunori Fujita, Mitsui Chemicals' general manager, said the company aims to produce at least 600,000 metric tons a year of benzene from gas obtained from regions including the Middle East, after about five years of research and development.

"If we are successful with this catalysis process, we may even be able to license it," said Fujita.

He was speaking after a press briefing hosted by his company and the Singapore government's Agency for Science, Technology and Research.

The gas-based benzene will supply a 250,000-ton/year phenol plant on Jurong Island being operated by Mitsui Phenols, a subsidiary of Mitsui Chemicals, which is currently using benzene produced from naphtha.

The plant uses 212,500 tons/year of benzene supplied by aromatics producers such as Petrochemical Corp. of Singapore and Exxon Mobil.

Mitsui Phenols plans to expand the plant's capacity to 300,000 tons/year by July 2007, Fujita said.

Spot benzene prices are currently trading above $1,000/ton on a free-on-board South Korea basis.

SOURCE: Mitsui Chemicals Inc.